Repairing your Credit Report after Financial Abuse

Transcript:Repairing your Credit Report after Financial Abuse:
Repairing your Credit Report after Financial Abuse April 2023 Amelia Klein Solicitor, Financial Abuse Service NSW, at RLC Outline What is financial abuse What are credit reports Correcting and repairing common credit report issues after financial abuse Questions RESOURCES: www.rlc.org.au/training/resources/financial-abuse What is financial abuse What is financial abuse? Financial or economic abuse is a form of domestic violence where an abuser uses money to gain power and to control their partner. Domestic violence is “a pattern of abusive behaviour in an intimate relationship or other type of family relationship where one person assumes a position of power over another and causes fear… It is often referred to as a pattern of coercion and control.” (1800RESPECT) There is no single agreed legal definition of domestic violence in Australia. Examples of financial abuse behaviours Joint debts or debt in victim-survivor’s name only Partner makes no contribution toward joint debts resulting in financial hardship Person signs documents for a loan or credit card for which the person got no benefit because they were afraid of their partner (e.g. car loan in the name of someone who doesn’t hold a licence) Person’s partner uses their identity to apply for loans / credit cards online without their consent Person’s partner takes out an expensive mobile phone contract in the person’s name resulting in financial hardship and disconnection of the person’s phone Person’s partner fraudulently applies for or takes control of social security benefits in their name, or forces them to apply to withdraw their superannuation early. Ongoing impacts of financial abuse Doesn't necessarily end with the relationship: consequences of financial abuse can continue for years, especially if the financial abuse has negatively impacted their credit score or eroded their financial security. Survivors can have no choice but to consolidate debts or take out payday loans to cover their living expenses, even years after the relationship. When will someone seek help? While they are in an abusive relationship When they are making plans to leave Immediately after they have left Many years after the relationship has ended. What are credit reports? Credit reports A credit report is a document which summarises information about loans, credit cards and other credit products in your name. It lists any applications or enquiries for credit that you have made. It will also list: any defaults with credit providers court judgements against you if you have been made bankrupt or entered